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Major Growth Strategies Adopted by Key Players in the Drug Discovery Services Market

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Makarand Vaidya

The process of developing a therapeutically active substance for a defined target molecule is known as drug discovery. Drug discovery is the early phase in which target identification, target validation, hit-to-lead identification, lead optimization, and candidate validation takes place to deliver any suitable molecule or candidate for drug development.

The drug discovery services market is projected to reach USD 19.1 billion by 2025 from USD 10.7 billion in 2020, at a CAGR of 12.1%  from 2020 to 2025. 

Market Size Estimation:

Both top-down and bottom-up approaches were used to estimate and validate the total size of the market. Other MnM proprietary reports were also referred to estimate the market size. These methods were also used extensively to determine the extent of various subsegments in the market. The research methodology used to estimate the market size includes the following:

The key players in the industry and markets have been identified through extensive secondary research.
The industry’s supply chain and market size, in terms of value, have been determined through primary and secondary research processes.
All percentage shares split, and breakdowns have been determined using secondary sources and verified through primary sources.

Drug discovery services are provided by contract research organizations (CROs) to pharmaceutical companies (pharmaceutical companies outsource these services to CROs).

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Major Industry Leaders:

The drug discovery services market is fragmented and is dominated by various players as per the segments. The major players operating in this market are Laboratory Corporation of America Holdings (US), Albany Molecular Research, Inc. (US), Charles River Laboratories International, Inc. (US), Evotec SE (Germany), Eurofins Scientific (Luxembourg), WuXi AppTec (China), GenScript Biotech Corporation (China),  and  Thermo Fisher Scientific, Inc. (US) among others.

Recent Developments:

In 2019, Charles River (US) and CHDI Foundation, Inc. (US), Extended collaboration on drug discovery and development for Huntington’s Disease by five years.

In 2019, Laboratory Corporation of America Holdings’s (US) opened the Covance Drug Development segment opened a new R&D Center in Shanghai, China—its largest facility in the Asia Pacific. This will help the company to grow its business in China and the APAC.

Laboratory Corporation of America Holdings (US)

Laboratory Corporation of America Holdings is a leading player in the drug discovery services market. LabCorp has built its expertise in entering new markets and successfully impacting them. The company has pursued competitive strategies such as acquisitions and expansions to strengthen its presence in the drug discovery services market. In 2017, LabCorp acquired Chiltern International, which increased its position as a global life sciences company with leading diagnostic and drug development businesses.

Key Questions Addressed in the Report:

What are the growth opportunities in the market across major regions in the future?
Emerging countries have immense opportunities for the growth and adoption of drug discovery services. Will this scenario continue during the next five years?
What are the various drug discovery services and their respective market shares in the overall market?
What are the new trends and advancements in the market?

Charles River Laboratories (US)

Charles River Laboratories is a prominent company in the drug discovery services market. The company offers various services ranging from target discovery to candidate validation. As one of the leading firms in the industry, Charles River Laboratories has numerous strengths that help it to thrive in the market place. The firm also has a successful track record of integrating complimentary firms via mergers and acquisitions.

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Eurofins Scientific SE (Luxembourg)

Eurofins Scientific SE is another crucial player in the drug discovery services market. Eurofins is a prominent provider of drug discovery services. Eurofins pharmaceutical services are offered for the entire drug development cycle, inclusive of discovery pharmacology, preclinical/early development, clinical-stage/central lab, development & manufacturing, and biopharma product testing. Moreover, Eurofins Pharma Discovery Services is recognized as an industry leader in providing drug discovery researchers the most extensive and most diverse portfolio of standard and custom in vitro safety & pharmacology assays and panels for drug screening and profiling. 

North America is expected to command the largest share of the drug discovery services market in 2020.

Based on the region, the global drug discovery services market is segmented into North America, Europe, the Asia Pacific, and Rest of the World. In 2020, North America is expected to command the largest share of the drug discovery services market. The large share of this market segment can be attributed majorly to the presence of well-established CROs, rising R&D expenditure by pharmaceutical & biopharmaceutical companies, and the availability of latest techniques, instruments, and facilities for drug discovery research.

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